Markets yearn for another Sitharaman spark: Will history repeat this Budget?
Finance Minister, Nirmala Sitharaman also has a unique place in the world of finance and stock markets. In September 2019, she announced a bold corporate tax rate cut from 30% to 22% for existing companies. The announcement electrified the stock markets, causing the Sensex and Nifty to skyrocket. The explosive market reaction was so unprecedented that traders and analysts began referring to the candlestick pattern formed on that day as the “Sitharaman Candle”.
This candlestick pattern symbolizes the power of transformative economic policy and its immediate impact on investor sentiment. It serves as a reminder of how one well-timed and impactful decision can create ripples across the market.
If there is any better time to take a bold step it is NOW. Our GDP growth has slowed down from 8.6% in December 2023 to 5.4% in September 2024. Enough has been done for corporates now is the time to do something bold for the individual tax payer that can boost consumption and propel our GDP.
There have been several rumours about a complete revamp of the Income Tax Act to simplify it. A complete revamp may be difficult to implement in one go but some bold steps in the right direction can lift the animal spirits of the market, which is in a dire state for the last four months. FIIs have been selling Indian equities in the secondary market like there is no tomorrow. Nifty and Sensex are down almost 12% from their all-time highs.
If Nifty ends the January series on a negative note, it will be the fourth consecutive month of
